China’s fourth-largest bank joined larger rivals including top lender Industrial and Commercial Bank of China to tap investors for billions of dollars of recapitalisation after a 2009 lending binge to support the government’s economic stimulus.

The approval was expected after the banking regulator tightened capital requirements on banks to pre-empt a rise in bad loans.

Last month, ICBC said the China Securities Regulatory Commission had approved its plan to issue up to 25 billion yuan ($3.68 billion) in convertible bonds in Shanghai.

ICBC is also planning to raise up to 45 billion Yuan ($6.6 billion) through a rights issue in Hong Kong and Shanghai.